NEW YORK CITY-LaSalle Hotel Properties said late Thursday it had acquired the leasehold interest in Hotel Roger Williams for $90 million from an affiliate of JRK Hotel Group. The purchase price on the 193-room boutique lodging property at 131 Madison Ave. includes the assumption of $64 million in debt.
Located in a circa-1930 building that was converted to lodging use in 1997, Hotel Roger Williams marks the Bethesda, MD-based REIT’s second Manhattan acquisition. It also owns the 126-key Gild Hall in the Financial District.
In a statement, LaSalle president and CEO Michael D. Barnello says now is an opportune time for further investment in New York City. “New York has demonstrated exceedingly strong growth thus far in the recovery, and we believe the outlook for this market is very favorable,” he says. The city’s marketing and tourism organization, NYC & Co., said in August that hotel occupancy was up 6.8% citywide for the first six months of 2010.
Hotel Roger Williams is subject to a master lease, which expires Dec 31, 2044. The $64 million of debt that LaSalle is assuming stems from a loan secured by the hotel with a fixed annual interest rate of 6.31%. The company says it funded the remainder of the purchase price with borrowings under its senior unsecured credit facility. JRK will continue to manage the property, located in Midtown at the corner of Madison and 31st Street.
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